February 14, 2011

January 22, 2015

January 10, 2018

Two former Indianapolis Local Public Improvement Bond Bank employees have been charged with theft and insurance fraud by the Marion County Prosecutor’s Office, after being accused of taking funds totaling nearly $400,000 from the bond bank.

Jacqueline Fitzgerald, 54, is charged with six counts of theft and two counts of insurance fraud, and Monica Durrett, 56, is charged with five counts of theft and one count of insurance fraud. While employed at the bond bank, the employees are believed to have claimed inappropriate benefit leave payouts and carried insurance on ineligible dependents. Fitzgerald also allegedly received unauthorized bonuses and incentive pay.

The prosecutor's investigation was completed with assistance by the Indiana State Board of Accounts. It began in June 2017 after Sarah Riordan, executive director of the bond bank, reported suspected employee theft.

“Unfortunately, we find that there are those who seek to take advantage of their employers in every occupation,” Marion County Prosecutor Terry Curry said in a press release. “We remain committed to investigating and prosecuting bad actors in any field, but particularly those in public employment in order to hold accountability on behalf of residents and protect the integrity of public offices.”

The bond bank is the debt-issuing and capital-financing arm of the city of Indianapolis and related entities. It oversees a debt portfolio in the billions of dollars. It also uses its financial muscle to help attract and support major development projects.

Fitzgerald and Durrett were fired from the bond bank in June 2017 after some of their alleged actions were discovered.

At the time of her termination, Fitzgerald was the only employee in the bond bank's human resources department, according to the charging affidavit. She was responsible for handling the bond bank corporation's payroll and benefit leave, as well as health insurance and retirement benefits. She also prepared checks for accounts payable.

Both former employees had enrolled grandchildren in their employer-provided health insurance despite not being legal guardians of those children, according to a probable cause affidavit.

Fitzgerald was allegedly paid $170,000 during her last year of employment despite her annual salary being $57,523. She also arranged to be regularly paid for dozens of hours of benefit leave in addition to her normal paycheck.

Durrett also allegedly received inappropriate benefit leave pay.

Warrants have been issued for Fitzgerald and Durrett, and they are expected to turn themselves in to authorities. Ralph Staples, an attorney for Durrett, could not be immediately reached. Fitzgerald’s attorney, Jesse Sanchez, was not available for comment.

In a statement from Mayor Joe Hogsett's office, the bond bank said it will “pursue all available remedies to recover” the losses, which impact the bond banks internal operational budgeted funds but not bond proceeds or debt service payments.

“Upon taking office, Mayor Hogsett made clear to all agencies working in and with city government that identifying waste, fraud, and abuse of taxpayer dollars is a top priority and those responsible should be held accountable,” Riordan said in a press release. “After discovering evidence indicating a possible decade-long effort by two individuals to fleece taxpayers, our office immediately reported it to law enforcement and has fully cooperated with this investigation.”

Colombo grew up in the Chicago suburbs before moving to Indianapolis to attend Butler University. She graduated from Butler in 2012 with degrees in journalism and political science before spending two years covering business and higher education at the Lafayette Journal & Courier and a year covering Indianapolis Public Schools for the not-for-profit news site Chalkbeat Indiana. Colombo joined IBJ in 2015 as a reporter, where she has covered multiple elections, held politicians accountable when they passed a law creating a monopoly, uncovered suspect spending of tax dollars in public schools, and explored challenges facing the city.

Colombo is also a member of the board of the Society of Professional Journalists’ Indiana chapter.
Beyond journalism, Colombo’s passions include the First Amendment, her elderly Cairn Terrier named Tilly, cooking and watching copious amounts of HGTV. Her life goal is to travel to all 50 states—she’s just a little more than halfway there.

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